Foxconn Q4: Chipmaker's revenue surpasses forecasts due to robust demand for AI servers, reaching $64.72 billion.

 

Due to the high demand for AI servers in the current market, Foxconn, a behemoth in the iPhone assembly industry, saw a spike in revenue to $64.72 billion, surpassing analyst projections, according to news agency Reuters.

The Taiwanese behemoth Foxconn, also known as Hon Hai Precision Industry Co., Ltd., exceeded its fourth-quarter revenue projections. On Sunday, January 5, the news agency Reuters reported that the corporation has declared its highest-ever revenue record, driven by increased demand for artificial intelligence (AI) servers.

According to a business statement issued on Sunday, which the agency reported, the largest contract electronic manufacturer in the world saw a 15.2% increase in revenue to $64.72 billion (T$2.13 trillion). Foxconn outperformed the T$2.1 trillion LSEG SmartEstimate.

The company has major tech clients like Nvidia and is the largest Apple iPhone assembler in the world.

Strong demand for AI servers contributed to the iPhone assembly giant's quarter-end revenues. The chipmaker claims that the demand is driven by the need for additional networking and cloud goods.

Increase in Revenue
The corporation also discussed the fourth-quarter sectors and the increase in overall sales. According to the news agency, the overall revenues increased 42.3% year over year (YoY) to T$654.8 billion, the second-highest amount for the month.

According to the corporation, its smart consumer electronics division, which includes iPhones, was "roughly flattish" year over year.

Regarding the outlook for the current quarter, Foxconn stated, "Overall operations have gradually entered the traditional off-season in the first quarter of 2025," according to the news agency.

According to the news article, although the corporation did not elaborate on the specifics, it also did not offer any numerical projections.

"The first quarter's sequential performance will reach roughly similar levels that are average to the past five years; compared with a year ago, it should show significant growth," Foxconn said, quoting the news agency, even if the fourth quarter of 2024 would see record-high sales.

The research states that Foxconn's stock increased 76% in 2024, outpacing the Taiwan market as a whole by 28.5%. The stock ended the day at 0.8 per cent lower on Friday ahead of the revenue data release. The company is set to release its fourth-quarter results on March 14.